Right-angle triangle is another type of triangle that is formed by converging support and resistance lines. The key characteristic is that either the support or resistance is horizontal. There are 2 types of right-angle triangels. An ascending right-angle triangle is one which the resistance is horizontal while the support line is ascending. A descending right-angle triangle is one which the support is horizontal while the resistance line is declining.

Ascending Right-Angle Triangle

An ascending right-angle triangle shows that while the bears are able to hold their ground at the horizontal resistance, the bulls are geting more bullish which is reflected by the rising lows. This is a bullish sign and there is a higher probability for the share to break out upwards. Below is an example of Kim Eng Holdings.

Descending Right-Angle Triangle

A descending right-angle triangle is the reverse of an ascending one. It shows that while the bulls are able to hold their ground at the horizontal support, the bears are geting more bearish and started selling at declining peaks. This is a bearish sign and there is a higher probability for the share to break out downwards. Below is an example of All-S Equity index.